AMBITION DX HOLDINGS Co.,Ltd. Q4 FY2025 earnings call

• Overall Financial Performance

  • The 2025 June fiscal year delivered all-time record high earnings, with gross profit reaching 10 billion yen. Total revenue increased 24.5% YoY to 52.372 billion yen, and operating profit increased 44.8% YoY to 3.946 billion yen. Operating profit, ordinary profit, and net profit all grew more than 40% YoY, exceeding the full-year guidance (111.9% of forecast operating profit, 113.6% of forecast ordinary profit, 103.1% of forecast net profit).
  • The company achieved 5 consecutive fiscal years of revenue and profit growth. Compared to its first listed fiscal year (June 2015), revenue is ~8x higher and operating profit is ~21x higher, with a 5-year compound annual growth rate of 40.9% for operating profit. ROE reached 32.5%, outperforming peer sectors on the Tokyo Exchange.
  • Key operational metrics: Managed units grew by 2,130 to 27,354 total units (15,621 sub-leased units), with a 98.3% occupancy rate that is well above the industry average of 90.1%.

• Strategic DX Initiatives

  • The company pursues both "offensive DX" (turning proven internal systems into SaaS, creating new businesses to drive industry-wide digital transformation) and "defensive DX" (using generative AI and blockchain to improve efficiency and automate core business processes). DX adoption has reduced time-to-contract by approximately 70%.
  • The company developed an in-house portfolio of DX products: AMBITION Cloud (end-to-end rental management DX), AMBITION Sign (blockchain-powered real estate-specific electronic contracting), AMBITION Me (all-in-one tenant service LINE platform), Rakutekku (AI+RPA for property listing process reduction), and Rumcon (renter matching service integrated with its brokerage business).
  • The company has started development of a next-generation core management system using microservices architecture, and appointed a former Google Cloud executive as generative AI advisory. It also entered a binding agreement to acquire shares in AI firm LiVrA to boost in-house AI development capabilities, with expected strong synergies from LiVrA's generative AI product expertise.

• Growth Strategy

  • The company's vision is to become the leading integrated real estate digital platform combining digital and physical operations, powered by generative AI and blockchain. It covers all 15 segments of the proptech industry.
  • The company pursues inorganic growth via M&A, alliances, and venture investment to deliver non-linear growth, expanding the "Ambition economic zone" and building new growth pillars. It has invested in 33 venture companies to date, 6 of which have gone public, with investments focused on businesses with synergies to its core operations.

• ESG Initiatives

  • Environmental: DX-powered paperless initiatives reduced paper printing by 16.7% YoY, and the company supports environmental conservation activities in Japan's Oze National Park.
  • Social: DX has reduced end-to-end process timelines by 69%, and the company supports employee professional development (real estate license and generative AI certification acquisition). It has been recognized as a certified excellent health management company for two consecutive years.

1. 賃貸DXプロパティマネジメント事業 (Rental DX Property Management Business): Revenue of 21.649 billion yen, up 7% YoY; Operating profit of 2.411 billion yen, up 23.4% YoY. This is the stock-type business contributing a balanced share of overall revenue.
2. 賃貸DX賃貸仲介事業 (Rental DX Rental Brokerage Business): Revenue of 1.02 billion yen, up 10.9% YoY; Operating profit of 54 million yen, up 301.7% YoY.
3. 売買DXインベスト事業 (Trading DX Investment Business): Revenue of 28.061 billion yen, up 43% YoY; Operating profit of 3.833 billion yen, up 41.5% YoY. This is the flow-type growth business contributing a balanced share of overall revenue.
4. インキュベーション事業 (Incubation Business): Revenue and profit declined YoY, though the business added 3 new venture investments during the period.
5. その他事業 (Other Business): Revenue of 1.631 billion yen, up 44.3% YoY; turned to an operating profit of 49 million yen from an operating loss of 28 million yen in the prior period, driven by growth from the low-cost short-term insurance and ZEH/lifeline service segments.

• The company upwardly revised its full-year 2026 June fiscal year guidance (the final year of its medium-term management plan) to reflect its consistent track record of outperforming targets. It forecasts substantial revenue and profit growth:
  • Total revenue of 64.1 billion yen, up 22.5% YoY
  • Operating profit of 4.8 billion yen, up 21.6% YoY
  • Net profit of 2.7 billion yen, up 18.1% YoY
• The company plans a substantial dividend increase, with an ordinary dividend of 110 yen per share, up from 105 yen per share (including special dividend) in 2025.
• 2026 fiscal year priorities are centered on DX as a core growth driver: actively using generative AI and other new technologies to improve cross-business efficiency and productivity, creating new blended online-offline customer experiences for both rental and trading businesses, accelerating M&A and alliances to expand business scope, and strengthening recruitment and training for AI and DX talent to boost organizational capability.

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